Plus when there are setbacks with building department on a flip (and there always is) I've had GCs tuck tail and run or try to bang myself or other developers over the head with change orders.

“The IMI is designed to highlight markets that are showing consistent improvement, and those markets that have registered the smallest gains are more susceptible to dropping off the list due to a minor setback in prices, permits or employment,” he explained.

It creates all kinds of regulatory issues they won't/can't comply with.

I'd only add that perhaps at least a mention be added of new regulatory requirements being investigated before doing any seller financing, in that section, but it's still very good.I also hope people will take the time to get a better overview of RE before selecting niche investment strategies, especially as to local customs.

My vote was to tear it down, but my partner and the bulder wanted to salvage it so we could work with grandfathered setbacks and a somewhat less demanding permitting process.We raised the 600 SF house 2 feet, and added 900SF of new space.

Additionally, regulations are also set by regulatory agencies, FDIC, Comptroller of Currency and beyond that Fannie Mae, Freddie Mac, USDA, FHA, VA and SBA can and will go further by region or market area.As to seller concessions, generally if concessions do not exceed 2 to 3 % of the sale price adjustments are not made but in the narrative section the appraisal will mention that closing costs were paid by the seller (in comp 2, for example), but if it is not significant it may not be.This does not preclude the appraiser from investigating the terms of any sale.

Right now we are trying to do all the due dilligence and planning with the contractor and city so once we put this into motion, there should be minimal set backs.

Anyways, we decided to build the ADU at the furthest portion of our backyard, setbacks were respected at 7feet, making the front door of the ADU over 125ft from the front of our property line and 60ft+ from the rear of our main home.

That's okay though, they'll be back in their previous line of work once the regulatory environment softens some and banks ease up on their current ultra strict underwriting standards.  

The lot may be too small based on the present set back codes or they may share services such as septic.